TORONTO, Aug 8 (Reuters) - Canada's dollar weakened to a
near five-month low against the U.S. currency on Monday,
approaching parity, as global fear about a possible double-dip
U.S. recession and European and U.S. debt crises weighed.

The euro also fell against the dollar, down more than 1
percent, while the yen gained broadly as investors sought
Japan's safe-haven currency given tumbling global stocks.
[FRX/]

"A number of important benchmark markets around the world
are in bear market territory now ... so this is an environment
where risk aversion is probably going to persist," said Shaun
Osborne, chief currency strategist at TD Securities.

"In that kind of environment we would expect the Canadian
dollar to continue underperforming."

Equity markets dropped on Monday in the third day of
fevered selling as investors fled riskier assets in the wake of
the weekend downgrade of U.S. sovereign debt and continued
worries of a contagion of European debt.
Continued...